89.2k views
5 votes
Determining firm performance is a complex interaction of firm effects and industry effects, with other factors also considered. Based on historical analysis, what do we know about firm and industry effects

1 Answer

4 votes

Answer and Explanation:

As per the historical analysis the explanation is shown below:-

a. Management decisions have a major role to play in firm results, rather than firm impact.

b. The influence of macro-environmental effects like recession is greater than that of either firm or industrial effects.

c. The firm effects have a greater impact on results than on the effects on industry.

d. The effects of the industry get more effect on results than firm effects.

User Isaac Hildebrandt
by
8.7k points

No related questions found